VA awards $2.6M contract for telephone answering services to Employment Source Inc

Contract Overview

Contract Amount: $2,622,810 ($2.6M)

Contractor: Employment Source Inc

Awarding Agency: Department of Veterans Affairs

Start Date: 2024-10-01

End Date: 2025-09-30

Contract Duration: 364 days

Daily Burn Rate: $7.2K/day

Competition Type: NOT AVAILABLE FOR COMPETITION

Number of Offers Received: 1

Pricing Type: FIRM FIXED PRICE

Sector: Other

Official Description: ADMINISTRATIVE AND TELEPHONE SWITCHBOARD OPERATOR SERVICES

Place of Performance

Location: FAYETTEVILLE, CUMBERLAND County, NORTH CAROLINA, 28301

State: North Carolina Government Spending

Plain-Language Summary

Department of Veterans Affairs obligated $2.6 million to EMPLOYMENT SOURCE INC for work described as: ADMINISTRATIVE AND TELEPHONE SWITCHBOARD OPERATOR SERVICES Key points: 1. Contract awarded on a firm-fixed-price basis, indicating predictable costs for the government. 2. The contract duration is one year, suggesting a need for ongoing operational support. 3. The award was not competitively procured, raising questions about potential cost savings. 4. The service category, telephone answering services, is essential for administrative operations. 5. The contractor, Employment Source Inc., has secured this award without a competitive process. 6. The contract is for administrative and telephone switchboard operator services.

Value Assessment

Rating: fair

The contract value of $2.62 million for a one-year period for telephone answering services appears to be within a reasonable range for such specialized administrative support. However, without a competitive bidding process, it is difficult to benchmark the pricing against market rates or identify potential cost savings. The firm-fixed-price structure provides cost certainty, but the lack of competition limits the ability to assess value-for-money comprehensively. Further analysis would require comparing this award to similar contracts awarded through competitive means.

Cost Per Unit: N/A

Competition Analysis

Competition Level: sole-source

This contract was awarded on a sole-source basis, meaning it was not open to competition from other potential vendors. The documentation indicates the contract was 'NOT AVAILABLE FOR COMPETITION.' This approach bypasses the standard competitive bidding process, which typically leads to better price discovery and potentially lower costs for the government. The lack of bidders means that the government did not explore alternative solutions or pricing structures that might have been offered by other qualified companies.

Taxpayer Impact: The absence of competition means taxpayers may not have received the most cost-effective solution. Without a bidding process, there is a missed opportunity to leverage market forces to drive down prices and ensure the government is getting the best possible value for its investment in these essential administrative services.

Public Impact

Veterans and VA staff will benefit from improved communication and administrative support through reliable telephone answering services. Essential administrative and telephone switchboard operations will be maintained, ensuring continuity of services. The services will be delivered within North Carolina, impacting the local administrative infrastructure. The contract supports administrative functions within the Department of Veterans Affairs.

Waste & Efficiency Indicators

Waste Risk Score: 50 / 10

Warning Flags

Lack of competition may lead to higher costs than a competitively bid contract.
Sole-source awards can limit opportunities for new or innovative service providers to enter the market.
Transparency in the justification for a sole-source award is crucial for public trust.

Positive Signals

Firm-fixed-price contract provides cost certainty for the duration of the award.
The contract addresses a clear need for essential administrative and communication services.
The award ensures continuity of operations for the Department of Veterans Affairs.

Sector Analysis

The market for administrative and support services, including telephone answering and switchboard operations, is a significant segment within the broader professional, scientific, and technical services sector. This contract falls under the NAICS code 561421 (Telephone Answering Services). While specific market size data for this niche is not readily available, the federal government consistently procures such services to maintain operational efficiency across various agencies. Benchmarking this contract's value against similar sole-source awards in this category would be challenging due to the lack of competitive data, but it represents a typical expenditure for essential administrative functions.

Small Business Impact

This contract was not awarded as a small business set-aside, and there is no indication of subcontracting requirements for small businesses. The award to Employment Source Inc. does not appear to directly benefit the small business ecosystem through set-aside provisions or mandated subcontracting goals. Further investigation into the contractor's own size and subcontracting practices would be needed to fully assess the impact on small businesses.

Oversight & Accountability

Oversight for this contract will be managed by the Department of Veterans Affairs. As a definitive contract, it is subject to standard procurement regulations and oversight mechanisms. Accountability will be ensured through contract performance monitoring and adherence to the firm-fixed-price terms. Transparency regarding the justification for the sole-source award is important, and any Inspector General reports related to VA procurement could provide further insights into oversight effectiveness.

Related Government Programs

Administrative Support Services
Call Center Operations
Communication Services
Federal Procurement
Department of Veterans Affairs Contracts

Risk Flags

Sole-source award lacks competitive justification.
Potential for non-optimal pricing due to lack of competition.
Limited transparency on contractor's past performance for similar services.

Frequently Asked Questions

What is this federal contract paying for?

Department of Veterans Affairs awarded $2.6 million to EMPLOYMENT SOURCE INC. ADMINISTRATIVE AND TELEPHONE SWITCHBOARD OPERATOR SERVICES

Who is the contractor on this award?

The obligated recipient is EMPLOYMENT SOURCE INC.

Which agency awarded this contract?

Awarding agency: Department of Veterans Affairs (Department of Veterans Affairs).

What is the total obligated amount?

The obligated amount is $2.6 million.

What is the period of performance?

Start: 2024-10-01. End: 2025-09-30.

What is the track record of Employment Source Inc. in performing similar government contracts?

Information regarding the specific track record of Employment Source Inc. in performing similar government contracts is not detailed in the provided data. To assess their past performance, one would typically review contract databases for previous awards, performance evaluations (e.g., Contractor Performance Assessment Reporting System - CPARS), and any documented issues or successes. Without this information, it's difficult to gauge their reliability and effectiveness in delivering telephone answering and switchboard operator services to federal agencies. A deeper dive into federal procurement records and performance databases would be necessary to provide a comprehensive answer on their track record.

How does the value of this contract compare to similar telephone answering services contracts awarded by the VA or other federal agencies?

The provided data does not include comparative contract values for similar telephone answering services. To make such a comparison, one would need to identify other definitive contracts awarded by the Department of Veterans Affairs or other federal agencies for telephone answering services (NAICS 561421) within a similar timeframe and with comparable scope and duration. Analyzing these comparable contracts, particularly those awarded through competitive bidding, would help determine if the $2.62 million for this one-year contract is above, below, or in line with market rates. The current award being sole-source makes direct value comparison more challenging, as competitive pressures are absent.

What are the specific risks associated with awarding this contract on a sole-source basis?

The primary risk associated with awarding this contract on a sole-source basis is the potential for inflated costs due to the lack of competition. Without multiple bidders vying for the contract, Employment Source Inc. may not have been incentivized to offer the lowest possible price. This can lead to the government paying more than it would have in a competitive environment. Another risk is the missed opportunity to explore innovative solutions or service enhancements that other potential contractors might have offered. Furthermore, sole-source awards can sometimes raise concerns about fairness and equal opportunity for other qualified businesses seeking government contracts.

What is the expected effectiveness of Employment Source Inc. in delivering these services based on the contract terms?

The contract is a firm-fixed-price definitive contract with a duration of one year, ending September 30, 2025. The specified service is 'ADMINISTRATIVE AND TELEPHONE SWITCHBOARD OPERATOR SERVICES' under NAICS code 561421. The effectiveness of Employment Source Inc. will be measured by their ability to meet the service requirements outlined in the contract's statement of work. The firm-fixed-price nature implies that the contractor is responsible for delivering the services at the agreed-upon price, regardless of their actual costs. The Department of Veterans Affairs will oversee performance, and effectiveness will be judged based on whether the services provided meet the agency's operational needs and quality standards.

What has been the historical spending pattern for telephone answering services by the Department of Veterans Affairs?

The provided data does not include historical spending patterns for telephone answering services by the Department of Veterans Affairs. To analyze this, one would need to access historical federal procurement data, such as from USAspending.gov or other government contract databases, and filter for contracts awarded by the VA under NAICS code 561421 over several fiscal years. This would reveal trends in spending, the number of contracts awarded, the types of contractors utilized (e.g., small vs. large businesses, competitive vs. sole-source), and average contract values. Such an analysis would provide context for the current $2.62 million award.

What is the justification for this contract being 'NOT AVAILABLE FOR COMPETITION'?

The provided data explicitly states the contract was 'NOT AVAILABLE FOR COMPETITION.' However, it does not detail the specific justification for this determination. Typically, federal agencies must provide a justification for sole-source awards, often citing reasons such as urgency, unique capabilities of a single source, or when only one responsible source is capable of meeting the requirement. Without the official justification document (e.g., a Justification and Approval - J&A), it is impossible to ascertain the precise rationale behind bypassing the competitive bidding process for these telephone answering services. This lack of transparency is a key area for further inquiry.

Industry Classification

NAICS: Administrative and Support and Waste Management and Remediation Services › Business Support Services › Telephone Answering Services

Product/Service Code: SUPPORT SVCS (PROF, ADMIN, MGMT) › PROFESSIONAL SERVICES

Competition & Pricing

Extent Competed: NOT AVAILABLE FOR COMPETITION

Solicitation Procedures: ONLY ONE SOURCE

Offers Received: 1

Pricing Type: FIRM FIXED PRICE (J)

Evaluated Preference: NONE

Contractor Details

Address: 600 AMES ST, FAYETTEVILLE, NC, 28301

Business Categories: AbilityOne Program Participant, Category Business, Corporate Entity Tax Exempt, Nonprofit Organization, Not Designated a Small Business, Special Designations, U.S.-Owned Business

Financial Breakdown

Contract Ceiling: $7,068,832

Exercised Options: $2,622,811

Current Obligation: $2,622,810

Contract Characteristics

Commercial Item: COMMERCIAL PRODUCTS/SERVICES

Cost or Pricing Data: NO

Timeline